Tech turnaround: ASX 200 tech shares surge higher on Friday

Today's big turnaround will be welcome news to ASX tech investors.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

S&P/ASX 200 Index (ASX: XJO) tech shares are enjoying a much-needed turnaround today.

At the time of writing tech shares are among the strongest performers, as witnessed by the 3.1% gain in the S&P/ASX All Technology Index (ASX: XTX), which includes companies outside of ASX 200 tech shares.

The ASX 200 itself is up 1.3% at this same time.

happy teenager using iPhone

Image source: Getty Images

Why are tech stocks rebounding?

Tech shares look to be getting a lift from a late afternoon rally in the tech heavy Nasdaq yesterday (overnight Aussie time).

With barely an hour to go before the closing bell, the Nasdaq was down 2.2% for the day. Then investors piled in, seeing the index finish up a slender 0.1%.

After a tough year, these ASX 200 tech shares are leaping higher

WiseTech Global Ltd (ASX: WTC), like most every tech stock, has struggled this year amid fast rising inflation and interest rate hike expectations. That's seen its share price tumble 34.5% year-to-date.

But today, the shareholders of the company which provides cloud-based software solutions for the logistics sector, can breathe easier, with shares up 2.3%.

Xero Limited (ASX: XRO), a business and accounting software provider, is also down 44.5% in 2022. But not today. At the time of writing, the Xero share price stands at $80.48, up 4.7%.

Leading the charge among ASX 200 tech shares is global payment systems giant Block Inc (ASX: SQ2). Block hasn't been immune to the wider tech market rout, with shares down 37.1% since 4 January.

Today the Block share price is surging higher, up 12.1%.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Technology Shares

Why are EOS shares crashing 25% today?

Let's see why investors are hitting the sell button today.

Read more »

Oil worker giving a thumbs up in an oil field.
Technology Shares

This ASX 200 technology company is about 50% undervalued, the team at Shaw and Partners says

This company does work for some of the world's oil and gas majors.

Read more »

An army soldier in combat uniform takes a phone call in the field.
Industrials Shares

These 2 lesser-known ASX defence stocks are tipped to soar

Analysts tip upsides as high as 122% over the next 12 months.

Read more »

A man in a business suit rides a graphic image of an arrow that is rebounding on a graph.
Broker Notes

Why this beaten down $9 billion ASX 200 share is now a buy

A leading expert believes AI will help, rather than hinder, this tech focused ASX 200 stock.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today.
Technology Shares

Guess which ASX defence stock is jumping 22% on US military order

It has been a strong start to the day for this small-cap stock.

Read more »

An army soldier in combat uniform takes a phone call in the field.
Growth Shares

Up 80% over the last month, EOS shares are near all-time highs. Should investors buy, hold or sell?

Electro Optic Systems has been one of the most impressive growth stocks on the ASX over the past year.

Read more »

A white EV car and an electric vehicle pump with green highlighted swirls representing ASX lithium shares
Technology Shares

Guess which ASX All Ords stock is jumping higher today on big Tesla news

Investors are bidding up the ASX All Ords stock today following news from Elon Musk’s Tesla.

Read more »

Ship carrying cargo
Technology Shares

3 reasons to buy WiseTech shares today

Morgans sees the ASX tech stock as a buy with 76% potential upside.

Read more »